How these elite bankers changed the face of the US - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 15 February 2013
How these elite bankers changed the face of the US A  A  A

Baltimore, Maryland

Today, on the Ides of February, we hold our hat in our hand; we bow our head...and let our mouth fall open in amazement. Our Lenten program of fasting, prayer and meditation is producing results. We are lightheaded from near-starvation and alcohol deprivation. But our thoughts are clear. Or else, we are hallucinating.

In the last two days, we've taken a look at what promises to be the biggest bust-up of all time.

It began in stealth...when a small group of big bankers boarded an unlisted train in the middle of the night. They all knew each other. All were from powerful New York banking families. But they didn't even use their own names when talking to one afraid were they that word of their meeting would leak out.

Then, the strange little group traveled in complete secrecy, to a small island compound off the coast of Georgia. There, they could talk freely. But the conversation wasn't about hunting or sports...or politics...or religion. It was about how they could change the way America - and the world -- does business. Every transaction - every purchase, every sale, every salary, every bonus, every investment gain or loss - everything -- would be affected. Everything would change.

How a group of investors made a small fortune, and then nearly lost it all...

Small Caps have the potential to deliver 1,000% returns.

And they also have a tendency of going all the way back to Zero.

This is an undeniable fact.

Today, we want to share with you our experience with small caps.

The highs we experienced. And the lows too...

...What we have learned in the process, and how we are putting that learning into practice to pick stocks (which incidentally are already starting to deliver).

Interested? Click here for full details...

Then, still operating in near total secrecy they got Congress to pass a law on Christmas Eve, when few member of Congress were at work and almost no one was paying attention - a law that would put vast new power in their hands. It must have been a bit like Obama's health care plan. It changes everything, but few people read the law before voting on it...and almost no one knew what it would mean.

Now - 100 years later - it is not only the law of the land; we have become the Land of the Law. That is, this new law changed the way we keep score in investing. It also changed the face of the country. We are now a nation shaped by paper money....formed by easy credit and activist bankers...built on a dollar of no sure value. It is a system that allows people - especially those in the federal government - to spend money they don't have...on things they don't need and can't afford. More importantly, it makes it possible for them to transfer vast sums of money...and massive new themselves.

It is that system that has kept the typical working man's wages flat for the last 40 years (easy money and nearly unlimited credit allowed Americans to buy what they needed from overseas manufacturers...and never have to settle up on the bill).

It is that system too that is responsible for electing presidents - such as Barack Obama himself, who without the support of this banking cartel would never have won the election in 2012. Americans go to the polls. They think they decide who runs the country. But the real decision was made long ago. The real decision makers are people whose names few people know. If they decide to dump a president, his chances of re-election plummet. If they decide to stick with him - as they did with Obama - he is a near shoo-in.

Do you remember? Just a few months before last year's election, stocks and houses were sinking and Obama was running behind in the polls. And then, things started going his way. His numbers started to look better. Housing began to stabilize. The stock market headed back up.

What happened?

The elite bankers - operating through the central bank that they own and control -- announced more 'stimulus.' And now they're committed to a program of QE Forever. As long as it takes. As much as it takes.

What did this mean, really? It meant that the Fed was printing money and giving it to its own cartel members. It didn't go to Mom & Pop businesses. It didn't go to struggling households. It didn't go to Rogue Economists.

No, it went to the big financial interests - the successors to the same fellows on the train 100 years ago. The movers and shakers in the financial world. The elite...the rich...the 1%. And it - more than anything else - determined the outcome of the 2012 election.

The popular press rants and raves about 'the rich'. But they have no real idea what is going on. They think the Fed is trying to 'stimulate' the economy. They're all for it. More money. More stimulus. More power to the activists.

But look what happened. The press reported a 'recovery' in housing. There was no such thing going on - not really. Instead, as revealed in this space, the big money was getting money - at virtually no cost, thanks to the Fed's Zero Interest Rate Policy - and using it to buy houses. Ownership was passing from the little guys to the big guys...from Main Street to Wall Street.

The big, well-financed players were buying up hundreds of thousands of houses... Yes, they were putting a floor under prices. But they were also shifting more wealth from middle America to the top of America.

And then Barack Obama - buoyed by a strong stock market...bottoming out housing prices...and phonied-up employment and inflation numbers - appealed to the little guy for his vote!

The whole show was breathtaking. The election was bought for him by the richest, most elite elements in the nation. And it was paid for with money that cost them nothing.

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Get The Daily Reckoning directly
in your mail box.
Just enter your e-mail address » 

Read our Privacy Policy and Terms Of Use.

Equitymaster requests your view! Post a comment on "How these elite bankers changed the face of the US". Click here!

3 Responses to "How these elite bankers changed the face of the US"


Feb 24, 2013

Members of the cartel,the "elite bankers" have no need to rig prices of their own stocks.They live in their own class and always maintain a low profile, prefering not to come into the limelight. They operate from behind the curtains.



Feb 15, 2013

Have you heard of the illuminati?



Feb 15, 2013

Weak conspiracy theory. If these elite bankers are so powerful, why are they not able to jack up the share prices of their banks?

Equitymaster requests your view! Post a comment on "How these elite bankers changed the face of the US". Click here!

Recent Articles:
Will They Haul Off Trump's Statue, Too?
August 16, 2017
All across the country, the old gods become devils. New, gluten-free gods take their places...
Farm Loan Waivers: Why Bad Economics Makes for Good Politics
August 14, 2017
It is because the negative effects of the waivers aren't clearly visible.
The Most Important Innovation in Finance Since Gold Coins
August 10, 2017
Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.
The Most Profitable Investment in the History of the World
August 8, 2017
'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'